The culture time of mycelia for immobilization was determined to 60 hour, time to give maximum mycelial weight. By immobilized cell with polyacryamide, k-carrageenan and polyurethane, cellulase production was tested in flask culture. k-Carrageenan and polyurethane gave good results. The condition of immobilization with carrageenan was optimized in flask culture. The results are obtained as 4\% carrageenan and 20\% cell concentration. And activation of immobilized cells with carrageenan and polyurethane was tested in flask culture. About 30 mg increase in dry weight was shown for both matrices and optimum activation time was shown to be 4 day. Cellulase production by immobilized cells with carrageenan and polyurethane were carried out in air-circulated fermentor. Carrageenan entrapped cell was shown to be more efficient. Therefore, by using carrageenan entrapped cell continuous production of cellulase was performed in various dilution rate. Steady state was reached after about 5 times of residence time. Maximum productivity of cellulase was 28 IU/1/hr in 0.05 $hr^{-1}$ of dilution rate. In comparision with single stage continuous system, about 30\% increase was shown in immobilized cell system. In 1\% latose medium batch operation was also performed. In 6 day final activity was obtained as 0.4 IU/ml.